Saving and Spending
Credit Cards and Credit Scores
Understand borrowed money before using credit.
6 minutesIntermediateReviewed July 23, 2026Lesson 8 of 15
Debit uses your existing money. Credit allows you to borrow and repay later. A primary credit-card holder generally must have reached the age of majority. Some issuers may allow younger authorized users.
Credit is not extra income
A credit purchase creates a balance. Interest may apply if the statement balance is not paid as required.
Paying only the minimum can greatly increase the total cost.
Credit scores
A credit report records credit use. Scores generally range from 300 to 900.
Payment history, debt, account history and applications may affect the score.
Carrying unnecessary debt does not build good credit.
Try this
- 1Write down whose money is used for debit vs. credit.
- 2Note whether repayment is required.
- 3Note when interest can apply.
Check your understanding
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